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    <dl>

        <dt>
            <br>
            <font size="4"><b>A</b></font></dt>



        <dt><br>

        <font size="2"><b>Appreciation</b></font></dt>


        <dt><br>

        <font size="2">An&nbsp;increase in the&nbsp;value of an asset over time. The increase can occur&nbsp;for a number of reasons including increased demand or weakening supply, or as a result of changes in inflation or interest rates. This is the opposite&nbsp;of depreciation, which is a decrease&nbsp;over time.</font></dt>

        <dt><br>

        <font size="2"><b>Arbitrage</b></font></dt>


        <dt><br>

        <font size="2">The simultaneous purchase and sale of an asset in order to profit from a difference in the price. This usually takes place on different exchanges or marketplaces.</font></dt>

        <dt><br>

        <font size="2"><b>Ask</b></font></dt>


        <dt><br>

        <font size="2">The price a seller is willing to accept for a security, also known as the offer price. Along with the price, the ask quote&nbsp;will generally also stipulate the amount of the security&nbsp;willing to be sold at that price.</font></dt>


        <dt><br></dt>


        <dt><br>

        <font size="2"><b>At best</b></font></dt>


        <dt><br>

        <font size="2">An instruction given to a dealer to buy or sell at the best rate that can be obtained.</font></dt>

        <dt><br>

        <font size="4"><b>B</b></font></dt>

        <dt><br>

        <font size="2"><b>Bar</b></font></dt>


        <dt><br>

        <font size="2">A graphical representation of&nbsp;a stock's movement that usually contains the open, high, low and closing&nbsp;prices for a set period of time.</font></dt>

        <dt><br>

        <font size="2"><b>Base Currency</b></font></dt>


        <dt><br>

        <font size="2">The&nbsp;first currency quoted in a currency pair on forex. It is also typically considered the domestic currency or accounting currency. For accounting purposes,&nbsp;a firm may use the base currency to represent all profits and losses.&nbsp;<br>

        It is sometimes referred to as the&nbsp;"primary currency".</font></dt>

        <dt><br>

        <font size="2"><b>Bear Market</b></font></dt>


        <dt><br>

        <font size="2">A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, which contributes to further pessimism.&nbsp;Although figures can vary, for many, a downturn of 20% or more in multiple broad market indexes, such as the Dow Jones Industrial Average (DJIA) or Standard &amp; Poor's 500 Index (S&amp;P 500), over at least a two-month period,&nbsp;is considered an entry into a bear market.</font></dt>

        <dt><br>

        <font size="2"><b>Bid</b></font></dt>


        <dt><br>

        <font size="2">1. An offer made by an investor, a trader or a dealer to buy a security. The bid will stipulate both the price at which the buyer is willing to purchase the security and the quantity to be purchased.<br>

        <br>

        2. The price at which a market maker is willing to buy a security. The market maker will also display an ask price, or the amount and price at&nbsp;which&nbsp;it is&nbsp;willing to sell.</font></dt>

        <dt><br>

        <font size="2"><b>Broker</b></font></dt>


        <dt><br>

        <font size="2">1. An individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor.<br>

        <br>

        2. The role of a firm when it acts as an agent for a customer and charges the customer a commission for its services.<br>

        <br>

        3. A licensed real estate professional who typically represents the seller of a property. A broker's duties may include: determining market values, advertising properties for sale, showing properties to prospective buyers, and advising clients with regard to offers and related matters.</font></dt>

        <dt><br>

        <font size="2"><b>Bull Market</b></font></dt>


        <dt><br>

        <font size="2">A financial&nbsp;market of a group of securities in which prices are rising or are expected to rise. The term "bull market"&nbsp;is most often used to refer to the stock market, but can be applied to anything that is traded, such as bonds, currencies and commodities.</font></dt>

        <dt><br>

        <font size="2"><b>Buy</b></font></dt>


        <dt><br>

        <font size="2">1. A recommendation to purchase a specific security.<br>

        2. To acquire an asset in exchange for currency.</font></dt>

        <dt><br>

        <font size="4"><b>C</b></font></dt>

        <dt><br>

        <font size="2"><b>Cable</b></font></dt>


        <dt><br>

        <font size="2">Slang used among forex traders referring to&nbsp;the exchange rate between the U.S. dollar and the British pound sterling. Because it is the norm in forex for most major currencies to be quoted against the U.S. dollar on a regular basis, "cable" is a commonly used term.<br>

        "Cable" can also be used to refer simply to the British pound sterling.&nbsp;</font></dt>

        <dt><br>

        <font size="2"><b>Candlestick</b></font></dt>


        <dt><br>

        <font size="2">A price chart that displays the high, low, open, and close for a security each day over a specified period of time.</font></dt>


        <dt><br>

        <img src="{#images_dir#}/fglossary/candle.gif"  border="0"></dt>

        <dt><br>

        <font size="2"><b>Close Position</b></font></dt>


        <dt><br>

        <font size="2">The act of taking the opposite position of the current position thereby getting out of a position in a particular stock or security.</font></dt>

        <dt><br>

        <font size="2"><b>Closing Price</b></font></dt>


        <dt><br>

        <font size="2">The final price at which a security is traded on a given trading day.&nbsp;The closing price represents the most up-to-date valuation of a security&nbsp;until trading commences again on the next trading day.</font></dt>

        <dt><br>

        <font size="2"><b>Commission</b></font></dt>


        <dt><br>

        <font size="2">A service charge assessed by a&nbsp;broker or investment advisor&nbsp;in return for providing investment advice and/or handling&nbsp;the purchase or sale of a security. Most major, full-service brokerages derive most of their profits from&nbsp;charging commissions on&nbsp;client transactions. Commissions vary widely from&nbsp;brokerage to brokerage.</font></dt>

        <dt><br>

        <font size="2"><b>Crawling Peg</b></font></dt>


        <dt><br>

        <font size="2">A&nbsp;system of&nbsp;exchange rate adjustment&nbsp;in which a currency&nbsp;with a&nbsp;fixed exchange rate is allowed to fluctuate within a band of rates. The par value of the stated currency is also adjusted frequently due to market factors such as inflation. This gradual shift of the currency's par value is&nbsp;done as an alternative to a sudden&nbsp;and&nbsp;significant devaluation of the currency.</font></dt>

        <dt><br>

        <font size="2"><b>Cross Trade</b></font></dt>


        <dt><br>

        <font size="2">A practice&nbsp;where buy and sell orders for the same stock are offset without recording the trade on the exchange, which&nbsp;is outlawed on most major stock exchanges.&nbsp;This also occurs when a broker&nbsp;executes both a buy and a sell for the same security from one client account to another&nbsp;where both accounts&nbsp;are managed by the same&nbsp;portfolio manager.</font></dt>


        <dt><br>

        <font size="2"><b>Cross Rate</b></font></dt>


        <dt><br>

        <font size="2">The currency exchange rate between two currencies, both of which are not the official currencies of the country in which the exchange rate quote is given in. This phrase is also sometimes used to refer to currency quotes which do not involve the U.S. dollar, regardless of which country the quote is provided in.</font></dt>

        <dt><br>

        <font size="2"><b>Currency</b></font></dt>


        <dt><br>

        <font size="2">A generally&nbsp;accepted&nbsp;form of money, including coins and paper notes,&nbsp;which is issued by&nbsp;a government and circulated within an economy.&nbsp;Used as a medium of exchange for goods and services, currency is the basis for trade.</font></dt>

        <dt><br>

        <font size="2"><b>Currency Risk</b></font></dt>


        <dt><br>

        <font size="2">The probability of an adverse change in exchange rates.</font></dt>

        <dt><br>

        <font size="4"><b>D</b></font></dt>

        <dt><br>

        <font size="2"><b>Day Order</b></font></dt>


        <dt><br>

        <font size="2">Any order to buy or sell a security that automatically expires if not executed on the day the order is placed.</font></dt>

        <dt><br>

        <font size="2"><b>Deal Ticket</b></font></dt>


        <dt><br>

        <font size="2">A ticket that records all the terms, conditions and basic information&nbsp;of a trade agreement. A deal ticket is created after the transaction of shares, futures contracts or other derivatives.&nbsp;</font></dt>

        <dt><br>

        <font size="2"><b>Dealer</b></font></dt>


        <dt><br>

        <font size="2">1. An individual or firm willing to buy or sell securities for their own account.<br>

        2. One who purchases goods or services for resale to consumers.</font></dt>

        <dt><br>

        <font size="2"><b>Dealing Desk (Trading desk)</b></font></dt>


        <dt><br>

        <font size="2">A desk where transactions for buying and selling securities occur. Trading desks can be found in most organizations (banks, finance companies, etc.) involved in&nbsp;trading investment instruments such&nbsp;as&nbsp;equities, fixed-income securities, futures, commodities and foreign exchange.&nbsp;A trading desk provides traders with access to instantaneous trade executions. Also known as "dealing desk".</font></dt>

        <dt><br>

        <font size="2"><b>Depreciation</b></font></dt>


        <dt><br>

        <font size="2">1. In accounting, an expense recorded to allocate a tangible asset's cost over its useful life.&nbsp;Because&nbsp;depreciation is a non-cash expense, it increases free cash flow while decreasing reported earnings.<br>

        2. A decrease in the value of a particular currency relative to other currencies.</font></dt>

        <dt><br>

        <font size="2"><b>Double Leverage</b></font></dt>


        <dt><br>

        <font size="2">When&nbsp;a bank holding company conducts a debt offering to acquire&nbsp;a large&nbsp;equity stake in a subsidiary bank. Ideally, dividends earned on the subsidiary company's stock&nbsp;are used to finance the holding company's interest payments.</font></dt>

        <dt><br>

        <font size="2"><b>Direct Quote</b></font></dt>


        <dt><br>

        <font size="2">A foreign exchange rate quoted as the domestic currency per unit of the foreign currency. In other words, it involves quoting in fixed units of foreign currency against variable amounts of the domestic currency.</font></dt>

        <dt><br>

        <font size="4"><b>E</b></font></dt>

        <dt><br>

        <font size="2"><b>Economic Indicator</b></font></dt>


        <dt><br>

        <font size="2">A piece of economic data, usually of macroeconomic scale, that is used by investors to interpret current or future investment possibilities and judge the overall health of an economy.&nbsp; Economic indicators can potentially be anything the investor chooses, but specific pieces of data released by government and non-profit organizations have become widely followed - these include:<br>

        <br>

        - The Consumer Price Index (CPI)<br>

        - Gross Domestic Product (GDP)<br>

        - Unemployment figures<br>

        - The price of crude oil</font></dt>

        <dt><br>

        <font size="2"><b>EMS</b></font></dt>


        <dt><br>

        <font size="2">A 1979 arrangement between&nbsp;several European countries to link their currencies in an attempt to stabilize the&nbsp;exchange rate. This system was succeeded by the European Monetary Union (EMU), an institution of the European Union (EU), which established a&nbsp;common currency called the euro.</font></dt>

        <dt><br>

        <font size="2"><b>Exchange Rate</b></font></dt>


        <dt><br>

        <font size="2">The price of one country's currency expressed in another country's currency. In other words, the rate at which one currency can be exchanged for another. For example, the higher the exchange rate for one euro in terms of one&nbsp;yen,&nbsp;the lower the relative value of the yen.</font></dt>

        <dt><br>

        <font size="2"><b>Exotic Currency</b></font></dt>


        <dt><br>

        <font size="2">A foreign exchange term for a thinly traded currency. Exotic currencies are illiquid, lack market depth&nbsp;and trade at low volumes. Trading an exotic currency can be expensive, as the bid-ask spread is usually large.</font></dt>

        <dt><br>

        <font size="2"><b>Exposure</b></font></dt>


        <dt><br>

        <font size="2">In foreign exchange, a potential for gain or loss because of movement in foreign exchange rate. There are three primary types of exposure:<br>

        1.&nbsp;&nbsp;&nbsp; Economic: The change in future earning power and cash flow arising from a change in exchange rates. In effect, it represents a change in the value of a company holding foreign currency.<br>

        2.&nbsp;&nbsp;&nbsp; Transaction: A potential gain or loss arising from transactions that will definitely occur in the future, are currently in progress, or could have already been completed. A signed but not shipped sales contract, a receivable or foreign currency payment collected but not converted to local currency would all be examples of transaction exposure.<br>

        3.&nbsp;&nbsp;&nbsp; Translation: The potential for change in reported earnings and/or the book value of the consolidated company equity accounts, as the result of a change in foreign exchange rates used to translate the foreign currency statements of subsidiaries and affiliates known as accounting exposure.</font></dt>

        <dt><br>

        <font size="4"><b>F</b></font></dt>

        <dt><br>

        <font size="2"><b>Forex</b></font></dt>


        <dt><br>

        <font size="2">The market in which participants are able to buy, sell, exchange&nbsp;and speculate on currencies.&nbsp;The forex markets&nbsp;is made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors. The currency market is considered to be the largest financial market in the world, processing trillions of dollars worth of transactions each day.</font></dt>

        <dt><br>

        <font size="2"><b>Fill or Kill Order</b></font></dt>


        <dt><br>

        <font size="2">An order to fill a transaction immediately and completely or not at all.</font></dt>

        <dt><br>

        <font size="2"><b>Fisher Effect</b></font></dt>


        <dt><br>

        <font size="2">A theory describing the long-run relationship between inflation and interest rates.</font></dt>

        <dt><br>

        <font size="2"><b>Forex Signal System</b></font></dt>


        <dt><br>

        <font size="2">A set of analyses that a forex trader uses to determine whether to buy or sell a currency pair at any given time. Forex signal systems could be based on technical analysis charting tools or news-based events. The day trader's currency trading system is usually made up of a multitude of signals that work together to create a buy or sell decision. Forex trading signals are available for free, for a fee or are developed by the traders themselves.</font></dt>

        <dt><br>

        <font size="2"><b>FRS</b></font></dt>


        <dt><br>

        <font size="2">The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States.</font></dt>

        <dt><br>

        <font size="2"><b>Fundamental Analysis</b></font></dt>


        <dt><br>

        <font size="2">A method of evaluating&nbsp;a security by attempting to measure&nbsp;its intrinsic value by examining related economic, financial and other qualitative and quantitative factors.&nbsp;Fundamental analysts attempt to study everything that can affect the&nbsp;security's value, including macroeconomic factors (like the overall economy and industry conditions)&nbsp;and individually specific factors (like&nbsp;the financial condition and management of companies).&nbsp;<br>

        <br>

        The end&nbsp;goal of performing fundamental analysis&nbsp;is to produce a value that an investor&nbsp;can compare&nbsp;with the security's current price in hopes of figuring out what sort of position to take with that security (underpriced = buy, overpriced =&nbsp;sell or short).<br>

        <br>

        This method of security analysis is considered to be the opposite of technical analysis.&nbsp;</font></dt>

        <dt><br>

        <font size="4"><b>G</b></font></dt>

        <dt><br>

        <font size="2"><b>Gold Standard</b></font></dt>


        <dt><br>

        <font size="2">A monetary system in which a country's government allows its&nbsp;currency unit&nbsp;to be&nbsp;freely converted into fixed amounts of gold and vice versa.&nbsp;The exchange rate under the gold standard monetary system is determined by the economic difference for an ounce of gold between two currencies.&nbsp;The gold standard was mainly used from 1875 to 1914 and&nbsp;also&nbsp;during the interwar years.&nbsp;</font></dt>

        <dt><br>

        <font size="2"><b>Good till Cancelled</b></font></dt>


        <dt><br>

        <font size="2">An order to buy or sell a security at a set price&nbsp;that&nbsp;is&nbsp;active until the investor decides to cancel it or the trade is executed. If an order does not have a good-'til-canceled instruction then the order will expire at the end of the trading day the order was placed.</font></dt>

        <dt><br>

        <font size="2"><b>Grid</b></font></dt>


        <dt><br>

        <font size="2">Fixed margin within which exchange rates are allowed to fluctuate.</font></dt>

        <dt><br>

        <font size="4"><b>H</b></font></dt>

        <dt><br>

        <font size="2"><b>Hard Currency</b></font></dt>


        <dt><br>

        <font size="2">A currency, usually from a highly industrialized country, that is widely accepted around the world as a form of payment for goods and services. A&nbsp;hard currency is expected to remain relatively stable through a short period of time, and to be&nbsp;highly liquid in the forex market.</font></dt>

        <dt><br>

        <font size="2"><b>Hedge</b></font></dt>


        <dt><br>

        <font size="2">Making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract.</font></dt>

        <dt><br>

        <font size="2"><b>Hit the Bid</b></font></dt>


        <dt><br>

        <font size="2">A&nbsp;buzzword used to describe an event where a broker agrees to sell at a bid price quoted by another broker. The broker is ultimately agreeing to sell a given stock at the highest price&nbsp;that another broker is willing to buy at.</font></dt>

        <dt><br>

        <font size="4"><b>I</b></font></dt>

        <dt><br>

        <font size="2"><b>Index</b></font></dt>


        <dt><br>

        <font size="2">A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is an imaginary portfolio of securities representing a particular market or a portion of it. Each index has its own calculation methodology and is usually expressed in terms of a change from a base value. Thus, the percentage change is more important than the actual numeric value.<br>

        <br>

        Stock and bond market indexes are used to construct index mutual funds and exchange-traded funds (ETFs) whose portfolios mirror the components of the index.</font></dt>

        <dt><br>

        <font size="2"><b>Indicative Quote</b></font></dt>


        <dt><br>

        <font size="2">In forex trading, a currency quote that is provided by a market maker to a trading party but that is not firm. In other words, when a market maker provides an indicative quote to a trader, the market maker is not obligated to trade the given currency pair at the price or the quantity&nbsp;stated in the quote. Contrast this to a firm quote, in which a&nbsp;market maker guarantees a specified bid or ask price to a trader up to the maximum quantity specified in the quote.</font></dt>

        <dt><br>

        <font size="2"><b>Initial Margin</b></font></dt>


        <dt><br>

        <font size="2">The percentage of the purchase price of securities (that can be purchased on margin) that the investor must pay for with his or her own cash or marginable securities.<br>

        Also called the "initial margin requirement".</font></dt>

        <dt><br>

        <font size="2"><b>International Monetary Fund (IMF)</b></font></dt>


        <dt><br>

        <font size="2">An international organization created for the purpose of:<br>

        1. Promoting global monetary and exchange stability.<br>

        2. Facilitating the expansion and balanced growth of international trade.<br>

        3. Assisting in the establishment of a multilateral system of payments for current transactions.</font></dt>

        <dt><br>

        <font size="2"><b>Intervention</b></font></dt>


        <dt><br>

        <font size="2">Action by a central bank to effect the value of its currency by entering the market. Concerted intervention refers to action by a number of central banks to control exchange rates.</font></dt>

        <dt><br>

        <font size="2"><b>Instrument</b></font></dt>


        <dt><br>

        <font size="2">1) A tradable asset or negotiable item such as a security, commodity, derivative or index, or any&nbsp;item&nbsp;that underlies a derivative. An&nbsp;instrument is a&nbsp;means by which something of value is transferred, held or accomplished.<br>

        2) An economic variable&nbsp;that can be controlled or&nbsp;altered by government policymakers in to&nbsp;cause a desired&nbsp;effect in other economic indicators.<br>

        3) A legal document such as a contract, will or deed.</font></dt>

        <dt><br>

        <font size="4"><b>K</b></font></dt>

        <dt><br>

        <font size="2"><b>Kiwi</b></font></dt>


        <dt><br>

        <font size="2">A&nbsp;slang&nbsp;term for the&nbsp;New Zealand dollar (NZD). It derives its name from New Zealand's national icon - a flightless bird called a kiwi - which is pictured on one side of the country's $1 coin.</font></dt>

        <dt><br>

        <font size="2"><b>Kurtosis</b></font></dt>


        <dt><br>

        <font size="2">A statistical measure used to describe the distribution of observed data around the mean.<br>

        It is sometimes referred to as the "volatility of volatility."</font></dt>

        <dt><br>

        <font size="4"><b>L</b></font></dt>

        <dt><br>

        <font size="2"><b>Leverage</b></font></dt>


        <dt><br>

        <font size="2">1. The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.<br>

        <br>

        2. The amount of debt used to finance a firm's assets. A firm with significantly more debt than equity is considered to be highly leveraged.</font></dt>

        <dt><br>

        <font size="2"><b>Limit Order</b></font></dt>


        <dt><br>

        <font size="2">An order placed with a brokerage to buy or sell a set number of shares at a specified price or better. Limit orders also allow an investor to limit the length of time an order can be outstanding before being canceled.</font></dt>

        <dt><br>

        <font size="2"><b>Liquidity</b></font></dt>


        <dt><br>

        <font size="2">1. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity.<br>

        2. The ability to convert an asset to cash quickly.&nbsp;Also known as "marketability".</font></dt>

        <dt><br>

        <font size="2"><b>Long Position</b></font></dt>


        <dt><br>

        <font size="2">1. The buying of a security such as&nbsp;a&nbsp;stock, commodity or currency, with the expectation that the asset will&nbsp;rise in value.<br>

        2. In the context of options, the&nbsp;buying&nbsp;of an options contract.<br>

        Opposite of short position.</font></dt>

        <dt><br>

        <font size="2"><b>Lot</b></font></dt>


        <dt><br>

        <font size="2">In general, any group of goods or services making up a transaction. In the financial markets, a lot represents the standardized quantity of a financial instrument as set out by an exchange or similar regulatory body. For exchange-traded securities, a lot may represent the minimum quantity of that security&nbsp;that may be traded.</font></dt>

        <dt><br>

        <font size="4"><b>M</b></font></dt>

        <dt><br>

        <font size="2"><b>Margin</b></font></dt>


        <dt><br>

        <font size="2">1. Borrowed money that is used to purchase securities. This practice is referred to as "buying on margin".<br>

        2. The amount of equity contributed by a customer as a percentage of the current market value of the securities held in a margin account.<br>

        3. In a general business context, the difference between a product's (or service's)&nbsp;selling price&nbsp;and the cost of production.<br>

        4. The portion of the interest rate on&nbsp;an adjustable-rate&nbsp;mortgage that is over and above the&nbsp;adjustment-index rate.&nbsp;This portion is retained as profit by the&nbsp;lender.</font></dt>

        <dt><br>

        <font size="2"><b>Margin Call</b></font></dt>


        <dt><br>

        <font size="2">A broker's demand&nbsp;on an investor using margin to deposit additional money or securities so that the&nbsp;margin account is brought up to the minimum maintenance margin.<br>

        This is sometimes called a "fed call" or "maintenance call".</font></dt>

        <dt><br>

        <font size="2"><b>Market Maker -</b></font></dt>


        <dt><br>

        <font color="#000000"><font face="Verdana"><font size="3"><font color="#000000"><font size="2">A dealer or financial institution who trades securities for their own account and maintains consistent firm bid and offer prices for these securities by buying or selling them continuously on the market at publicly quoted prices.</font></font></font></font></font></dt>

        <dt><br>

        <font size="2"><b>Market Order</b></font></dt>


        <dt><br>

        <font color="#000000"><font face="Verdana"><font size="3"><font color="#000000"><font size="2">A buy or sell order to a broker in which a price is not specified.</font></font></font></font></font> <font size="2"><br></font><font color="#000000"><font face="Verdana"><font size="3"><font color="#000000"><font size="2">This order is to be executed at the best possible price immediately following the time it is received on the trading floor.</font></font></font></font></font></dt>

        <dt><br>

        <font size="2"><b>Mine and Yours</b></font></dt>


        <dt><br>

        <font size="2">Terms used by floor traders to signify buying and selling. Mainly used&nbsp;in forex transactions.</font></dt>

        <dt><br>

        <font size="4"><b>N</b></font></dt>

        <dt><br>

        <font size="2"><b>Netting</b></font></dt>


        <dt><br>

        <font size="2">1. Settling mutual obligations at the net value of a contract as opposed to its gross dollar value.<br>

        2. Reducing the transfer of funds between subsidiaries to a net amount.</font></dt>

        <dt><br>

        <font size="4"><b>O</b></font></dt>

        <dt><br>

        <font size="2"><b>Offer Price</b></font></dt>


        <dt><br>

        <font size="2">1. When one party expresses interest to buy or sell an asset&nbsp;from another party. The offering price is often the highest&nbsp;the buyer will pay to purchase an asset, and the lowest that the seller will accept.<br>

        2. The act of making an asset available for sale.</font></dt>

        <dt><br>

        <font size="2"><b>One Cancels Other Order</b></font></dt>


        <dt><br>

        <font size="2">An order stipulating that if one part of the order is executed, then the other part is automatically canceled.</font></dt>

        <dt><br>

        <font size="2"><b>Open Position</b></font></dt>


        <dt><br>

        <font size="2">An active trade with corresponding unrealized P&amp;L, which has not been offset by an equal and opposite deal.</font></dt>

        <dt><br>

        <font size="2"><b>Over the Counter (OTC)</b></font></dt>


        <dt><br>

        <font size="2">A security&nbsp;traded in some context other than&nbsp;on a formal&nbsp;exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter"&nbsp;can be used to refer to stocks&nbsp;that trade via a dealer network as opposed to on a centralized exchange. It also refers to debt securities and other financial instruments such as derivatives, which are traded through a dealer network.</font></dt>

        <dt><br>

        <font size="2"><b>Overnight Rate (O/N)</b></font></dt>


        <dt><br>

        <font size="2">The interest rate at which a depository institution lends immediately available funds (balances within the central bank) to another depository institution overnight.</font></dt>

        <dt><br>

        <font size="4"><b>P</b></font></dt>

        <dt><br>

        <font size="2"><b>Parity</b></font></dt>


        <dt><br>

        <font size="2">1. In general, a situation of equality. Parity can occur in many different contexts, but it always means that two things are equal.<br>

        2. The official value.<br>

        3. In an exchange market, when all brokers bidding for the same security have equal standing due to identical bids.</font></dt>

        <dt><br>

        <font size="2"><b>Pip</b></font></dt>


        <dt><br>

        <font size="2">The smallest price change that a given exchange rate can make. Since most major currency pairs are priced to four decimal places, the smallest change is that of the last decimal point - for most pairs this is the equivalent of&nbsp;1/100</font><sup><font size="2">th</font></sup> <font size="2">of one percent, or one basis point.</font></dt>

        <dt><br>

        <font size="2"><b>Position</b></font></dt>


        <dt><br>

        <font size="2">The amount of a security either owned (which constitutes a long position) or borrowed (which constitutes a short position) by an individual or by a dealer. In other words, it's a trade an investor currently holds open.</font></dt>

        <dt><br>

        <font size="2"><b>Profit Taking</b></font></dt>


        <dt><br>

        <font size="2">The action of selling stock to cash in on a sharp rise. This action pushes prices down temporarily. When traders are profit taking, the&nbsp;implication is that&nbsp;there is an upward trend in the security.</font></dt>

        <dt><br>

        <font size="4"><b>Q</b></font></dt>

        <dt><br>

        <font size="2"><b>Quote</b></font></dt>


        <dt><br>

        <font size="2">1. The last price at which a security or commodity&nbsp;traded, meaning the most recent price on which a buyer and seller agreed and at which some amount of the&nbsp;asset was transacted.<br>

        2. The bid or ask quotes are the most current prices and quantities&nbsp;at which the shares can be bought or sold. The bid quote shows the price and quantity at which a current&nbsp;buyer is willing to purchase the shares, while the ask shows what a current participant is willing to sell the shares for.<br>

        This is also&nbsp;known&nbsp;as an asset's "quoted price".</font></dt>

        <dt><br>

        <font size="2"><b>Quoted Currency</b></font></dt>


        <dt><br>

        <font size="2">The second currency&nbsp;quoted in a currency pair&nbsp;in forex. In a direct quote, the quote currency is the foreign currency. In an indirect quote, the quote currency is the domestic currency.<br>

        Also known&nbsp;as the "secondary currency" or "counter currency".</font></dt>

        <dt><br>

        <font size="4"><b>R</b></font></dt>

        <dt><br>

        <font size="2"><b>Resistance Level</b></font></dt>


        <dt><br>

        <font size="2">The price at which a stock or market can trade, but&nbsp;not &nbsp;exceed, for a certain period of time.<br>

        <img src="{#images_dir#}/fglossary/resistance.gif"  border="0"></dt>

        <dt><br>

        <font size="2"><b>Risk Management</b></font></dt>


        <dt><br>

        <font size="2">The employment of financial analysis and trading techniques to reduce and/or control exposure to various types of risk.</font></dt>

        <dt><br>

        <font size="2"><b>Rollover</b></font></dt>


        <dt><br>

        <font size="2">A rollover is when you do the following:</font></dt>

    </dl>


    <ol>

        <li>

            <p><font size="2">Reinvesting funds from a mature security into a new issue of the same or a similar security.</font></p>

        </li>


        <li>

            <p><font size="2">Transferring the holdings of one retirement plan to another without suffering tax consequences.</font></p>

        </li>


        <li>

            <p><font size="2">A charge that is incurred by Forex investors who&nbsp;move their positions to the following delivery date.</font></p>

        </li>

    </ol>


    <dl>

        <dt><br>

        <font size="2"><b>Round-Trip Trading</b></font></dt>


        <dt><br>

        <font size="2">An action that attempts to inflate transaction volumes through the continuous and frequent purchase and sale of a particular security, commodity or asset. Round-trip trading&nbsp;can be&nbsp;used to&nbsp;refer to&nbsp;the practice of a business selling an unused asset to another company while agreeing to buy back the same asset for about the same&nbsp;price (which has been seen in the energy&nbsp;and telecom business).&nbsp;</font></dt>

        <dt><br>

        <font size="4"><b>S</b></font></dt>

        <dt><br>

        <font size="2"><b>Short Position</b></font></dt>


        <dt><br>

        <font size="2">1. The sale of a borrowed security, commodity or currency with the expectation that the asset will fall in value.<br>

        2. In the context of options, it is the sale (also known as "writing") of an options contract.<br>

        Opposite of long position.</font></dt>

        <dt><br>

        <font size="2"><b>Slippage</b></font></dt>


        <dt><br>

        <font size="2">The difference between estimated transaction costs and the amount actually paid.</font></dt>

        <dt><br>

        <font size="2"><b>Square</b></font></dt>


        <dt><br>

        <font size="2">Purchase and sales are in balance and thus the dealer has no open position.</font></dt>

        <dt><br>

        <font size="2"><b>Spot Price</b></font></dt>


        <dt><br>

        <font size="2">The current price at which a particular commodity can be bought or sold at a specified time and place.</font></dt>

        <dt><br>

        <font size="2"><b>Spread</b></font></dt>


        <dt><br>

        <font size="2">1. The difference between the bid and the ask price of a security or asset.<br>

        2. An options position established by purchasing one option and selling another option of the same class but of a different series.</font></dt>

        <dt><br>

        <font size="2"><b>Stop-loss Order</b></font></dt>


        <dt><br>

        <font size="2">An order placed with a broker to sell a security when&nbsp;it reaches a&nbsp;certain price. It is designed to limit an investor's loss on a security position.<br>

        Also known as a "stop order" or "stop-market order".</font></dt>

        <dt><br>

        <font size="2"><b>Support Level</b></font></dt>


        <dt><br>

        <font size="2">The price level&nbsp;which, historically,&nbsp;a stock has had difficulty falling below. It is thought of as the level at which a lot of buyers&nbsp;tend to enter the stock.<br>

        <br>

        <img src="{#images_dir#}/fglossary/support.gif"  border="0"></dt>
        <dt><br>

        <font size="2"><b>Swap</b></font></dt>


        <dt><br>

        <font size="2">Traditionally, the exchange of one security for another to change the maturity (bonds), quality of issues (stocks or bonds), or because investment objectives have changed. Recently, swaps have grown to include currency swaps and interest rate swaps.</font></dt>

        <dt><br>

        <font size="2"><b>Swap Rate</b></font></dt>


        <dt><br>

        <font size="2">The rate of the fixed portion of a swap as determined by its particular market. This is the rate at which the swap will occur for one of the parties entering into the agreement.</font></dt>

        <dt><br>

        <font size="2"><b>Swissy</b></font></dt>


        <dt><br>

        <font size="2">Market slang for Swiss Franc.</font></dt>

        <dt><br>

        <font size="4"><b>T</b></font></dt>

        <dt><br>

        <font size="2"><b>Take Profit Order</b></font></dt>


        <dt><br>

        <font size="2">An order used by currency traders specifying the exact rate or number of pips from the current price point&nbsp;where to close out&nbsp;their current position for a profit. The rate deemed to be the level where the trader wants to take a profit is&nbsp;sometimes referred to as the "take-profit point".</font></dt>

        <dt><br>

        <font size="2"><b>Technical Analysis</b></font></dt>


        <dt><br>

        <font size="2">A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.</font></dt>

        <dt><br>

        <font size="2"><b>Technical Correction</b></font></dt>


        <dt><br>

        <font size="2">A decrease in the market price of an asset or entire market&nbsp;after extensive price increases. A technical correction occurs even when there is no evidence that the increasing price trend should cease. It is often caused when investors temporarily slow down their purchases of securities, which commonly leads to a pullback toward a short-term support level.</font></dt>

        <dt><br>

        <font size="2"><b>Thin Market</b></font></dt>


        <dt><br>

        <font size="2">A market with a low number of buyers and sellers. Since few transactions take place in a thin market, prices are often more volatile and assets are less liquid. The low number of bids and asks will also typically result in a larger spread between the two quotes.<br>

        Also known as a "narrow market".</font></dt>

        <dt><br>

        <font size="2"><b>Tick</b></font></dt>


        <dt><br>

        <font size="2">The minimum upward or downward movement in the price of a security.</font></dt>

        <dt><br>

        <font size="2"><b>Trailing</b></font></dt>


        <dt><br>

        <font size="2">A term used to describe the most recent time period. &nbsp;</font></dt>

        <dt><br>

        <font size="2"><b>Two-Way Quote</b></font></dt>


        <dt><br>

        <font size="2">A type of quote that gives both the bid and the ask price of a security, informing would-be traders of the current price at which they could buy or sell the security. The two-way quote also shows the spread between the bid and the ask, giving traders an idea of the current liquidity in the security (a smaller spread&nbsp;indicates more liquidity).</font></dt>

        <dt><br>

        <font size="4"><b>U</b></font></dt>

        <dt><br>

        <font size="2"><b>Uncovered</b></font></dt>


        <dt><br>

        <font size="2">Another term for an open position.</font></dt>

        <dt><br>

        <font size="2"><b>Under-valuation</b></font></dt>


        <dt><br>

        <font size="2">An exchange rate is normally considered to be undervalued when it is below its purchasing power parity.</font></dt>

        <dt><br>

        <font size="2"><b>Uptick Rule</b></font></dt>


        <dt><br>

        <font size="2">A former rule established by the SEC that requires that every short sale transaction&nbsp;be entered at a price that is higher than the price of the previous trade. This rule was introduced in the Securities Exchange Act of 1934 as Rule 10a-1. The uptick rule prevents short sellers from adding to the downward momentum when the price of an asset is&nbsp;already experiencing sharp declines. The SEC eliminated the rule on July 6, 2007.</font></dt>

        <dt><br>

        <font size="4"><b>V</b></font></dt>

        <dt><br>

        <font size="2"><b>Value Date</b></font></dt>


        <dt><br>

        <font size="2">A future date used in determining the value of a product that fluctuates in price. Typically, you will see the use of value dates in determining the payment of products and accounts where there is a possibility for discrepancies due to differences in the timing of valuation. Such products include forward currency contracts, option contracts, and the interest payable or receivable on personal accounts. Also referred to as "valuta".</font></dt>

        <dt><br>

        <font size="2"><b>Volatility</b></font></dt>


        <dt><br>

        <font size="2">1. A statistical measure of the dispersion of returns for a given security or market index. Volatility can either be&nbsp;measured&nbsp;by using&nbsp;the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security.<br>

        2.&nbsp;A variable in option pricing formulas&nbsp;showing the extent to which the return of the underlying asset will fluctuate between now and the option's expiration. Volatility, as expressed as a percentage coefficient within option-pricing formulas, arises&nbsp;from&nbsp;daily trading activities. How volatility is measured&nbsp;will&nbsp;affect the value of the&nbsp;coefficient used.</font></dt>

        <dt><br>

        <font size="2"><b>Volume</b></font></dt>


        <dt><br>

        <font size="2">The number of shares or contracts traded in a security or an entire market during a given period of time.&nbsp;It is&nbsp;simply the&nbsp;amount of shares that trade hands from sellers to buyers&nbsp;as a measure of activity.&nbsp;If&nbsp;a buyer of a stock purchases 100 shares from a seller,&nbsp;then the volume for that period increases by 100 shares based on that transaction.</font></dt>

        <dt><br>

        <font size="4"><b>W</b></font></dt>

        <dt><br>

        <font size="2"><b>Wash Trade</b></font></dt>


        <dt><br>

        <font size="2">An illegal stock trading practice where an investor simultaneously buys and sells shares in a company through two different brokers.</font></dt>

        <dt><br>

        <font size="2"><b>Whipsaw</b></font></dt>


        <dt><br>

        <font size="2">A condition where a security's&nbsp;price heads in one direction, but then&nbsp;is followed quickly&nbsp;by a movement in the&nbsp;opposite direction. The origins of term is derived from the push and pull action used by&nbsp;lumberjacks to cut wood with a type of saw&nbsp;with the same name.</font></dt>

        <dt><br>

        <font size="4"><b>Y</b></font></dt>

        <dt><br>

        <font size="2"><b>Yard</b></font></dt>


        <dt><br>

        <font size="2">Slang for&nbsp;one billion units in currency.</font></dt>

        <dt><br>

        <font size="2"><i><b>Source:</b></i></font> <font color="#0000FF"><u><a href="http://investopedia.com/"><font size="2"><i>Investopedia</i></font></a></u></font></dt>

        <dt><br></dt>
    </dl>
